Sunoco (NYSE:SUN) Reaches New 1-Year High Following Analyst Upgrade

Key Points

• Mizuho upgrade lifted Sunoco to a new 52-week high after raising its price target to $75 and keeping an outperform rating; the stock traded as high as $68.45 (last $67.65) on the move.
• Dividend increased to $0.9899 per share quarterly (annualized $3.96), implying a 5.9% yield with an ex-dividend date of May 8 and a payout ratio of 164.32%, signaling the dividend exceeds recent earnings.
• Quarterly earnings missed expectations—Sunoco reported $0.09 EPS vs. $1.64 expected and $8.60B revenue vs. $9.65B expected, though revenue was up 63.2% year-over-year.

Sunoco LP (NYSE:SUN - Get Free Report) reached a new 52-week high on Wednesday after Mizuho raised their price target on the stock from $66.00 to $75.00. Mizuho currently has an outperform rating on the stock. Sunoco traded as high as $68.45 and last traded at $67.65, with a volume of 244975 shares. The stock had previously closed at $66.89.

A number of other brokerages have also issued reports on SUN. Zacks Research raised Sunoco from a "strong sell" rating to a "hold" rating in a research report on Wednesday, April 1st. Wall Street Zen downgraded Sunoco from a "buy" rating to a "hold" rating in a report on Saturday, February 14th. JPMorgan Chase & Co. increased their target price on Sunoco from $66.00 to $73.00 and gave the stock an "overweight" rating in a research note on Tuesday, March 24th. Barclays set a $63.00 target price on Sunoco in a research report on Friday, February 20th. Finally, Raymond James Financial raised shares of Sunoco from an "outperform" rating to a "strong-buy" rating and set a $70.00 price target on the stock in a research report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $69.33.

Hedge Funds Weigh In On Sunoco

A number of hedge funds and other institutional investors have recently made changes to their positions in SUN. Steigerwald Gordon & Koch Inc. purchased a new position in shares of Sunoco in the third quarter valued at $31,000. Ancora Advisors LLC acquired a new stake in Sunoco in the 3rd quarter valued at about $40,000. Glen Eagle Advisors LLC increased its holdings in Sunoco by 496.5% during the 4th quarter. Glen Eagle Advisors LLC now owns 853 shares of the oil and gas company's stock valued at $45,000 after acquiring an additional 710 shares in the last quarter. Cresta Advisors Ltd. acquired a new position in Sunoco during the fourth quarter worth about $64,000. Finally, Russell Investments Group Ltd. lifted its holdings in shares of Sunoco by 110.3% in the fourth quarter. Russell Investments Group Ltd. now owns 1,569 shares of the oil and gas company's stock valued at $82,000 after purchasing an additional 823 shares in the last quarter. Hedge funds and other institutional investors own 24.29% of the company's stock.

Sunoco Stock Up 1.0%

The company has a debt-to-equity ratio of 2.06, a current ratio of 1.38 and a quick ratio of 0.78. The firm's 50-day moving average price is $64.54 and its 200 day moving average price is $58.18. The firm has a market capitalization of $13.84 billion, a price-to-earnings ratio of 29.74 and a beta of 0.48.

Sunoco (NYSE:SUN - Get Free Report) last issued its quarterly earnings data on Tuesday, February 17th. The oil and gas company reported $0.09 earnings per share for the quarter, missing analysts' consensus estimates of $1.64 by ($1.55). Sunoco had a net margin of 2.01% and a return on equity of 10.76%. The business had revenue of $8.60 billion for the quarter, compared to analyst estimates of $9.65 billion. During the same quarter last year, the business earned $0.75 EPS. Sunoco's revenue for the quarter was up 63.2% compared to the same quarter last year. Sell-side analysts expect that Sunoco LP will post 7.83 EPS for the current year.

Sunoco Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 20th. Investors of record on Friday, May 8th will be paid a dividend of $0.9899 per share. This represents a $3.96 dividend on an annualized basis and a yield of 5.9%. The ex-dividend date is Friday, May 8th. This is an increase from Sunoco's previous quarterly dividend of $0.93. Sunoco's dividend payout ratio (DPR) is currently 164.32%.

About Sunoco

Sunoco LP NYSE: SUN is an independent master limited partnership that specializes in the distribution and marketing of transportation fuels and related products. The company operates through two primary segments: wholesale fuel distribution and retail marketing. In wholesale distribution, Sunoco supplies branded fuels to distributors, commercial customers and resellers across the United States. Its retail marketing arm operates a network of company‐owned and franchised Sunoco branded service stations and convenience stores, providing gasoline, diesel, ethanol blends and lubricants to consumers.

Sunoco's product portfolio extends beyond traditional fuels to include biofuels, specialty chemicals and on‐road diesel treated to meet ultra‐low sulfur requirements.

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